American Greetings scouts Chicago sites for HQ

(Crain's) — American Greetings Corp. said Friday it is considering seven sites — including two in the Chicago area — for its corporate headquarters.

Cleveland-based American Greetings expects to make a decision by next February, which marks the end of its fiscal year.

American Greetings early last year bought Chicago-based Recycled Paper Greetings Inc., which is headquartered downtown at River Center, 111 N. Canal St.

An American Greetings spokeswoman would not identify the two Chicago-area sites under consideration.

The company has not ruled out remaining at its current home in Brooklyn, a southwest suburb of Cleveland.

Last January, after Brooklyn voted to increase its city income tax to 2.5% from 2.0%, American Greetings' leaders told their 2,000 Brooklyn-based employees that the company was considering a move.

American Greetings officials said they considered sites in downtown Cleveland but could not find a property that fit the company's needs. The company initially considered more than 15 sites in Ohio and sites in three other states.

"We are an evolving company in a changing industry, and we must adapt our headquarters building — whether it remains in Brooklyn or is relocated — to most efficiently accommodate us today and in the future," said Brian McGrath, American Greetings senior vice-president of human resources, in a statement.

Mr. McGrath said “significant progress” has been made in the site search.

In a news release, American Greetings said it “began to assess the location of its headquarters office only after the city of Brooklyn increased its income tax rate while lowering the residential property tax rate — effectively shifting taxes from the voting residents to the non-voting associates of American Greetings and other Brooklyn employers.”

The tax increase “prompted a broader study of American Greetings' operations and its future facility needs,” the company said.

American Greetings said it has hired real estate, finance and architecture experts to assist with the site assessments.

The company's decision carries large stakes for Northeast Ohio, as American Greetings says it has a local annual payroll of more than $150 million.